Dustin Adams posted a couple weeks ago about the possible problems with raising the minimum wage. We should seriously consider these issues which may cause future strains on the nation’s already overstretched budget.
Consider basic Macroeconomic principles associated with raising the minimum wage. Raising the wage limits the amount of labor firms can afford to employ. As a result unemployment rises and Uncle Sam’s pocket is the one that pays in forms of social welfare programs.
For this reason I have a hard time understanding the left wing complaints about the deficit, for raising the minimum wage will most likely raise the deficit further. Maybe we should take a step back from social programs for the time being and focus on limiting government spending in areas that are not of great importance.
Sen. DeMint makes a great point about standard of living throughout different states. One should also think about the variance of jobs throughout each state. It seems to me that the minimum wage debate may be better off handled at a regional level.
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